Regulatory changes, including the recently agreed Packaging and Packaging Waste Regulation (PPWR), is fuelling the evolution of reusable and refillable packaging as an alternative to single-use plastics, according to the latest report from Smithers.
This creates challenges for packaging designers, retailers and logistics operators – as they now have to overcome it if reuse packaging is to become a plausible solution in new applications.
The latest exclusive data found in the report titled – The Future of Reusable and Refillable Packaging to 2029 – show that in 2024, global value will reach $28.2 billion.
The report finds that across all segments, future growth is forecast at a +4.6 per cent compound annual growth rate (CAGR) to 2029, yielding a market value of $35.36 billion in its final year.
According to Smithers, globally, the market is dominated by existing reuse/refill bottle formats (glass, PET, metal), and industrial transit formats (drums and rigid intermediate bulk containers). These are mature segments that will see incremental growth across the Smithers forecast period.
“In contrast, the most exciting area of the market however are new consumer reuse and refill concepts,” Smithers explains.
“While still a nascent segment, Smithers data modelling shows sales will increase at +15 per cent CAGR to 2029 – more than doubling in value, and approaching $1 billion in sales by the end of the decade.
“This covers a range of new business options for consumer goods – refill at home, return from home, and refill in store.”
The report states that these models are becoming especially popular in personal care and home cleaning markets, with major CPG firms competing with dedicated e-commerce sellers. Meanwhile, penetration is being driven by the desire to experiment and provide tangible proof to customers of the brands commitment to a more sustainable future.
For packaging designers, Smithers says there is a need to innovate, to provide more resilient pack designs that can endure long service lives, including multiple refilling without compromising functionality or aesthetics.
This is seen to foster innovation for new refillable metal containers, in particular, durable plastics, and more robust caps and dispensing fixtures.
For these concepts to be effective, Smithers identifies four key priorities for pack design:
- Optimising convenience for the purchaser;
- Carefully balancing price and functionality;
- Creating consumer incentives; and
- Linking seamlessly to integrated logistics and support tools.
Smithers says that as this happens, CPG brands are increasingly using smart technology to enhance the user experience, with services such as automatic refill deliveries for registered subscribers.
Europe is poised to expand its existing reuse systems following the recent agreement of the EU’s PPWR, which will require all member states to establish deposit return schemes for plastic and metal drink packaging from 2029, closely followed by mandatory targets for 10 per cent reuse formats in most beverage segments from 2030.
This will stimulate significant investment across the region, and provide practical exemplars for how and when reuse/refill models can contribute to wider circular economy goals.
